Belgium-based retailer Delhaize has moved to a loss in the first quarter but maintained its outlook for the full year.
In the three months to the end of September, Delhaize recorded a net loss of EUR78m (US$104.7m). This compared to earnings of EUR193m last year.
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The retailer attributed the loss to lower operating profit and EUR199m impairment charges, mainly related to its Serbian goodwill and trade names.
Operating profit declined from EUR226m last year to a EUR20m loss this year’s quarter, mainly as a result of a lower underlying operating profit.
Revenues in the period were down 0.5% at actual exchange rates but increased by 2.9% at identical exchange rates. Comparable store sales grew 2.2% in the US and 1.5% in Belgium.
Despite the losses, the Brussels-based grocer maintained its guidance for the full year. The company expects underlying operating profit of at least EUR755m at identical exchange rates compared to EUR785m in 2012 and free cash flow of around EUR500m.
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